Kraken launches Own Crypto Wallet, Joining Competition With Coinbase, MetaMask

Kraken, the second-largest cryptocurrency exchange in the United States, has made a significant leap by developing its own wallet. 

This move puts Kraken on par with its competitor Coinbase and positions it in a crowded market that includes other major players like MetaMask, Ledger, and Trezor.

The newly launched "Kraken Wallet" is a self-custodial wallet that will be available to both Kraken users and non-users. 

The wallet will initially support eight blockchains, including Bitcoin, Ethereum, Solana, Optimism, Base, Arbitrum, Polygon, and Dogecoin.

What sets the Kraken Wallet apart is that it is the first wallet from a major exchange to be open-sourced. 

This means that developers can access and contribute to the code. 

Kraken also has an open-source grant program in place, which rewards developers who identify vulnerabilities in the code. 

This ensures that any bugs or issues can be addressed and the wallet can be improved.

Kraken emphasizes the importance of privacy and user data protection. 

The wallet collects only the absolute minimum amount of data necessary for its functioning. 

User activity is anonymized through Kraken's infrastructure, safeguarding IP addresses and preventing the exposure of users' identity and location information to external parties.

Coinbase's Coinbase Wallet is widely popular, and other major exchanges like Binance and OKX also offer their own wallets. 

However, Kraken believes in the principles of self-custody and user privacy, which have been central to the cryptocurrency space for over a decade. 

Eric Kuhn, the Product Director for Kraken Wallet, stated that their goal was to create a wallet that enables people to access the various ecosystems and developments happening on-chain.

Kraken has been expanding its product suite in recent months. They have been in talks with multiple layer 2 teams to explore building their own layer 2 blockchain. 

This move aligns with the growing demand for on-blockchain products and services, as highlighted by the collapse of FTX crypto exchange in 2022, which underscored the risks of centralized exchanges.

Eric Kuhn emphasized that Kraken Wallet is their investment in the "your keys, your crypto" ecosystem, which is crucial for enabling permissionless financial access. 

While they welcome other wallets, their focus is on building the best all-in-one crypto wallet that is open source, secure, and private.